City of London Investment Group PLC : Half Yearly Results

City of London Investment Group PLC

?

20th January 2014

CITY OF LONDON INVESTMENT GROUP PLC

("City of London" or "the Group")

HALF YEAR RESULTS TO 30TH NOVEMBER 2013

City of London (LSE:CLIG) announces half year results for the six months to 30th November 2013.

SUMMARY

? Funds under Management ("FuM") of US$3.5 billion (£2.1 billion) at 30th November 2013. This compares with

US$3.7 billion (£2.4 billion) at the beginning of this financial year on 1st June 2013 and US$3.9 billion (£2.4 billion)

at 30th November 2012

? FuM at 31st December 2013 of US$3.5 billion (£2.1 billion)

? Revenues representing the Group's management charges on FuM, were £11.8 million (2012: £15.1 million)

? Profit before tax of £3.3 million (2012: £4.7 million)

? Maintained interim dividend of 8p per share payable on 28th February 2014 to shareholders on the register on

7th February 2014

? Cash and cash equivalents at the period end of £9.9 million (2012: £5.8 million)

? Change of financial year end from 31st May to 30th June

"Itwaswithconsiderablepleasurethatwewitnessedtowardsthe endofthe6monthperiodbothconfirmationof

theturnaround in our investment performance together with renewed interest in taking advantage of

a "cheap" Emerging Markets CEF sector by contrarianandopportunisticinvestors."

DavidCardale,Chairman

or contact:

Barry Olliff (CEO)

City of London Investment Group PLC

Tel: [phone]

Martin Green

Canaccord Genuity Limited

Tel: [phone]

Chairman'sstatement

Inwritingthis,mysecondinterimreportasChairman,IfindthatIhavemuchin commonwithGeorgeOsborne,

theUKChancelloroftheExchequer,inreporting inhisAutumnStatementonthestateoftheeconomy.Wehave

comethroughsome difficulttimesbuttherereallyarenowsignificantgreenshootsenablingustotake arathermore

positiveviewofprospectsfor2014.

Thefinancialresultsforthesixmonthperiodto30thNovember2013reflectthelessfavourableinvesting conditionsthatwehavebeenexperiencing.Notonlyweretherefewerprofitabletradingopportunities combinedwithanadverseheadwindspecifictotheCEFsector,butinadditionglobalinvestorscontinuedto benervousofprospectsforemergingeconomiesparticularlycomparedtothedevelopedeconomies.This, togetherwithourbelowparinvestmentperformance,resultedinanenvironmentinwhichtherecontinuedto belittleornointerestfrominvestorsintakingupanynewstrategiesorproducts,includingourown.

Inlightoftheaboveitwaswithconsiderablepleasurethatwewitnessedtowardstheendofthe6month periodbothconfirmationoftheturnaroundinourinvestmentperformancetogetherwithrenewedinterest intakingadvantageofa"cheap"EmergingMarketsCEFsectorbycontrarianandopportunisticinvestors. New

fundsundermanagement("FuM")havesubsequentlybeensubscribedbothbyexistingandnew clientsinourcore

EmergingMarketsCEFproducts.

FuM at the Company's half-year end on 30th November 2013 were US$3.5 billion (£2.1 billion), compared tothe

US$3.7billion(£2.4billion)at31stMay2013.Thedecreaseof6%inUSdollartermscompareswith a2%increase

intheMSCIEmergingMarketsIndex(MXEF).

Results-unaudited

AsaresultofthedeclineinFuM,revenuesforthehalf-yearwere22%lowerat£11.8million(2012:£15.1 million).Aspreviously,ourpracticeofkeepingourratiooffixedcoststovariablecoststoaminimum meantthatoverallcostsdeclinedwithrevenues,producinga19%reductioninadministrativeexpensesto

£8.5millionfortheperiod(2012:£10.5million).Profitbeforetaxwas£3.3millioncomparedto£4.7 millionforthesixmonthsto30thNovember2012,representingadeclineof29%.

Variablecostswithinadministrativeexpensesrepresentedapproximately42%ofthetotal(2012:49%).The principal

componentsareprofit-shareof£1.6million(2012:£2.3million),andthecommissionpayabletoour ex-thirdpartymarketingconsultantof£1.5million(2012:£2.2million).

Basicearningspershare,aftera28%taxchargeof£0.9million(2012:£1.4millionrepresenting29%of profitbeforetax),were9.6p(2012:13.1p).Dilutedearningspersharewere9.6p(2012:12.9p).

Yearend

AsexplainedintheCEO'sreport,yourboardhasdecidedtobringyourcompany'syearendintolinewitha quarterdate

-30thJune.Thelogicinmakingthischangeassetoutinthatreportiscompelling,indeedI wonderwhywehavetakensolonginmakingthechangefromayearenddatethatwasoriginally determinedbythedate

offoundingtheoriginalbusiness.

Dividends

Sincebecomingapubliccompanyin2006,ithasbeenyourboard'spolicyatleasttomaintainthedividend withintheconstraintsoffinancialresponsibility.Inthelightofbothoursubstantialuncommittedliquid resources,togetherwiththeimprovedtradingoutlook,itisourintention,notwithstandingtheweakertrading overthefirsthalfyear,topayamaintaineddividendof8pon28thFebruary2014toshareholdersonthe registeron

7thFebruary2014.

Ourdividendpaymentpolicyhasnormallybeenbasedonasplitofonethird/twothirdsbetweenthe interimandthefinal,andcurrentlytherearenoplansforthistochangehoweverthisassumesa continuationoftherecoverythatwehavebeenbenefitingfrominrecentmonths.Inthelightofthe limitedamountofworkingcapitalthatabusinessofthisnaturebothneedsand,inaddition,isrequiredby theregulatorstomaintain,theboardisreviewingthelogicofourhistoricpolicyofatargetcoverashigh as1.5times.

Board

Aspreviouslyannounced,withtheappointmentofBarryAlinginAugust2013asaUKbasedNEDwenow haveabetterbalanceontheboardandwehavealreadybenefitedfromhisextensiveexperienceinthe LondonandFarEastinternationalequitymarkets.HehasbeenappointedchairmanoftheAuditCommittee withAllanBufferdcontinuingtochairtheRemunerationCommitteeandRianDartnelltheNominations Committee.

Inlinewithourpolicyofputtinginplacelongtermsuccessionarrangements,furtherprogresshasbeen madeinplanningfortheCIOresponsibilityforourcoreEmergingMarketsCEFproducttobedevolvedto MarkDwyerwhohashadapproximately9yearsofexperienceatCityofLondonandisextremelywell versedinour

investmentmethodology.Thisprocessshouldbecompletein2015.

Outlook

Followingonfrommycommentsattheyearend,Icanconfirmthesteadyifunspectacularimprovement inmuchofourbusiness.Whilstthereareexternalpressuresonfeesacrosstheindustry,wearecountering withcontainmentofourowncostsandworkinghardonconvertingsignificantnewbusiness opportunities.InthelightofthisIamhappytorepeatmyearlierstatementintheAnnualReportthatI anticipateasatisfactoryoutcomeforthefinancialperiodasawhole.

DavidCardale

Chairman

17thJanuary2014

ChiefExecutiveOfficer'sreview

FundsunderManagement('FuM')attheGroup'shalfyearend,30thNovember 2013wereUS$3.5billion(£2.1billion).

ThisshouldbecomparedwithUS$3.9 billion(£2.4billion)at30thNovember 2012andUS$3.7billion(£2.4billion)as at31stMay2013.Asanupdate,FuMattheendofDecemberwereUS$3.5billion (£2.1billion).

MXEF,(whichweuseasaproxyviawhichourFuMcanbemeasuredandcompared),was1018atthe

endofNovember2013,1007attheendofNovember2012,928attheendofNovember2011and1008at theendofMay2013.MXEFattheendofDecember2013was1002.Thesepriceindexlevelsshouldbe comparedwiththe

all-timehighinMXEFof1340attheendofOctober2007andourall-timehighassets undermanagementofUS$6.2billion

attheendofApril2011.

ForsometimewehavebeenconsideringthepossibilityofchangingourFinancialYearfromendMayto endJune.Thecomplexityofmakingquarterlytradingannouncementsoutsideourclients'quarterendhas madeourannouncementssignificantlymorecomplicatedthannecessary.Additionallywithour competitorsusingMarch,June,SeptemberandDecemberasquarterendsforbothprofitandperformance calculationpurposes,wehavehadamismatchofinformationintermsofresearchcoverage.Wehave thereforedecidedtoextendthisfinancialyearbyonemonthtoendJune.

Weareinvestigatingifwecanpaythedividendearlierthanwouldotherwisebethecase(aroundthe presentassumeddatein

October).

Overthepastfewyearswehavegraduallyattemptedtobecomemoretransparentwithourshareholders. Thebenefitsofthisaresignificantasnotonlyareshareholdersabletotradeinourshareswithgreater confidence,butinadditiontoourshareholders,CLIMstaffandclients(thethreestakeholdersinour business),arebetterabletodeterminetheconditionofourbusinessandthuswhattheirversionofour sharepriceshouldbe.Westartedthisprocessafewyearsagowithatableshowingtherun-offbenefits fromouragreementwithouroriginalthirdpartymarketingagentintermsofthepotentialamountthey wereowed

duringtheperiodofthecontract'srun-off,andweextendedthislastyearviathepublicationof CLIMmonthlyFuMonourwebsite:http : //www .citlon.co.u k /shar eholde r s/ a nnounce m ents.php

Asweareallaware,increasinglyweareexpectedtobemoretransparentregardingjustaboutevery aspectofourbusiness.Regulators,clientsandconsultants(nottomentionshareholders)areincreasingly expectingthatfundmanagersarebothtransparentand,moreimportant,thatweavoidconflictsofinterest. Fromourpointofviewwehavealwaysattemptedtobeattheleadingedgeintermsofopennessandthis hasenabledus,wehope,toretainthetrustofourshareholdersthroughthisperiodofour underperformance.Obviously,duringadifficultperiodintermsofourbusinessandprofitability,we believethebenefitsofbecomingmoreopenoutweighthestatusquo.

Asaresultofthiswishtobecomemoretransparentwearenowmovinginthedirectionofforward guidance.Mostoftheleadingcentralbankshaveattemptedoverthepastfewyearstobecome significantlymoretransparent.IftheFederalReservecanprovideforwardguidanceasaresultofits analysisoftheUS(andWorld?)economythenIamsurethatCLIGcantoo.

Ourbusinessisasimpleoneandthereforelendsitselftogreatertransparencybaseduponpotentiallya fewkeyassumptions.Ourforwardguidanceisnotaspecificforecast,ratherit'sanattempttoprovidean illustrativeframeworkthatenablesinterestedpartiestocalculatewhatmighthappeninthefuturetoour post-taxprofitsbaseduponthesekeyassumptions.Obviouslyinternallywereviewthisdatamonthlybut wehavedecidedthatquarterlydata,projectedoutsixquarterswouldbeastartingpointinthisregard.

InadditionwehaveproducedactualequivalentdataforF/Y/E2013.

Tablewithassumptions(below)includingthequarterlyestimatedcostofamaintaineddividend:

Dividend cover - actual and assumed 2013 -2015
	2012/2013- £0.2m to Reserves					2013/2014- £0.8m from Reserves				2014/2015- £0.5m to Reserves
£'000s	Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3		Q4
Post Tax Profit (£)	1,735	1,574	1,675		1,282	1,157	1,263	1,176	1,588	1,423	1,534	1,734		1,869
Present Dividend Breakeven (£)	1,515	1,515	1,515		1,515	1,508	1,508	1,508	1,508	1,508	1,508	1,508		1,508
To/(From) Reserves (£)	220	59	160		(233)	(351)	(245)	(332)	80	(85)	26	226		361
Actual figures (£'000s) in bold
Assumed post tax profit figures (£'000s) in italics

? Figures in italicsrepresentassumptionsasfollows:

- StartingpointCurrentFuM(Dec2013)

-Pipelineofpotentialmandates(additional$500m)straight-linedtoDec2014andtargetnewmoney
for2015(additional$500m)straight-linedJan-Dec2015

- Operatingmarginadjustedmonthlyforchangeinclientmixandcommissionrun-off

- Marketgrowth:+5%(sixmonthsendJune2014)+anadditional10%(twelvemonthsJune2015)

- Increaseinoverhead:+1%(2014/15)

- Assumestotalnumberandmixofstaffoverheadbetweenthefourofficesremainsconstant

- Corporationtaxbasedonanestimatedaveragerateof28%forY/E2014and27%forY/E2015

- Exchangerateassumedtobe£1/$1.63forentireperiod

- NumberofCLIGSharesinissue(27.0m)lessthoseheldbytheESOPTrust(1.8m)asat31stDec 2013

- IncludesextramonthofincomeinQ42014

- IncludesinQ32013/14profitof$250,000fromsaleofCLIMInternationalCEFFund

For more information, please see Half Year Report 2013/14 at

http://www.citlon.com/shareholders/share_reports.php

Giventheaboveassumptionsitshouldbepossibleforshareholdersandotherinterestedpartiesto constructmodelsprojectingourprofitabilitybasedupontheirownopinions.

As we have suggested in previous statements we are gradually gaining traction in a number of areas of ourbusiness.TheAbsoluteReturngrouphaswonamandatefor$20mandtheFrontier,Developedand NaturalResourceteamsareallexpectedtowinadditionalmandatespriortotheendofcalendar

yearend2014.

IamverypleasedtoreportthattheexpectedinvestmentperformanceoftheEmergingMarketsClosed EndFundteamshouldplaceusinthetop of the secondquartileforcalendar2013.Thiscompletestheprocessof turningaroundourbusinessandconfirmsthatwithgoodpeople,technologyandalsoaconservative countryallocationprocessit'spossibletotakeadvantageofpricinganomaliesamongsttheclosedend fundsinwhichwecaninvest.Iamnowhopefulthatwecanbuildfromthisbaseandcontinuetoprovide consistentuninterruptedalphaforourclients.Baseduponourindepthresearchintonewareasofour attributionwehavelearntalotoverthepastyearorso,themostimportantexampleofthisbeing confirmationthatwidediscountsarenotofthemselvesanopportunitytomakemoney.Havingmadethis pointIwouldaddthattheEmergingMarketsInvestmentManagementteamhasremainedunchanged throughoutthisperiodwithoneexception,theadditionofMarkDwyer.MarkrejoinedCLIMinMay 2012andwillduring2015takeovermyEMCEFCIOresponsibilities.

TheSizeWeightedAverageDiscount(SWAD)remainsverywideandwhileitremainswideshouldenableustocontinuetoprovideadditionalalpha asaresultofthesignificantandongoingcorporateactionsfrommanyoftheEMCEFinwhichweinvest. IftheSWADnarrowstherewill potentiallybeanadditionalbenefit.

BarryM.Olliff

ChiefExecutiveOfficer

17thJanuary2014

ForfurtherinformationpleaseseethemostrecentpresentationtoCLIGshareholdersreleasedtoday. Thisisonourwebsitewww.citlon.co.uk

Consolidated incomestatement

Forthesixmonthsended30thNovember2013

	Note	Six months ended 30th Nov 2013 (unaudited) £	Six months ended 30th Nov 2012 (unaudited) £	Year ended 31st May 2013 (audited) £
Revenue	2	11,785,990	15,135,250	29,363,734
Administrative expenses Staff costs		4,623,433	5,696,604	11,665,656
Commissions payable		1,552,237	2,227,843	4,194,097
Custody fees payable		458,982	643,855	1,244,318
Other administrative expenses		1,756,378	1,824,386	3,678,097
Depreciation and amortisation		86,072	111,830	222,556
		(8,477,102)	(10,504,518)	(21,004,724)
Operating profit		3,308,888	4,630,732	8,359,010
Interest receivable and similar income	3	26,284	34,097	501,107
Profit before tax		3,335,172	4,664,829	8,860,117
Income tax expense		(915,365)	(1,355,279)	(2,593,675)
Profit for the period		2,419,807	3,309,550	6,266,442
Basic earnings per share	4	9.6p	13.1p	24.9p
Diluted earnings per share	4	9.6p	12.9p	24.6p

Consolidated statement ofcomprehensiveincome

Forthesixmonthsended30thNovember2013

	Six months ended 30th Nov 2013 (unaudited) £	Six months ended 30th Nov 2012 (unaudited) £	Year ended 31st May 2013 (audited) £
Profit for the period	2,419,807	3,309,550	6,266,442
Fair value gains on available-for-sale investments* Release of fair value (gains) on disposal of available-for-sale investments*	114,506 (33,161)	379,361 -	534,357 (165,621)
Other comprehensive income	81,345	379,361	368,736
Total comprehensive income for the period attributable to equity holders of the company	2,501,152	3,688,911	6,635,178
*Net of deferred tax

Consolidated statement offinancialposition

30thNovember2013

	Note	30th Nov 2013 (unaudited) £	30th Nov 2012 (unaudited) £	31st May 2013 (audited) £
Non-current assets
Property and equipment		438,874	559,272	490,658
Intangible assets		284,128	329,589	306,858
Other financial assets		27,344	31,486	37,897
Deferred tax asset		159,839	337,191	239,980
		910,185	1,257,538	1,075,393
Current assets
Trade and other receivables		3,400,539	3,693,521	3,538,726
Available-for-sale financial assets		1,701,342	7,526,393	3,847,526
Cash and cash equivalents		9,896,827	5,791,168	10,061,185
		14,998,708	17,011,082	17,447,437
Current liabilities
Trade and other payables		(2,275,620)	(4,092,094)	(3,130,923)
Current tax payable		(477,040)	(441,180)	(671,404)
Creditors, amounts falling due within one year		(2,752,660)	(4,533,274)	(3,802,327)
Net current assets		12,246,048	12,477,808	13,645,110
Total assets less current liabilities		13,156,233	13,735,346	14,720,503
Non-current liabilities
Deferred tax liability		(114,764)	(98,997)	(90,467)
Net assets		13,041,469	13,636,349	14,630,036
Capital and reserves
Share capital		269,727	268,327	269,377
Share premium account		2,060,809	2,019,159	2,045,409
Investment in own shares	5	(4,910,800)	(4,984,300)	(4,910,800)
Fair value reserve		384,212	313,492	302,867
Share option reserve		628,227	786,162	716,660
Capital redemption reserve		20,582	20,582	20,582
Retained earnings		14,588,712	15,212,927	16,185,941
Total equity		13,041,469	13,636,349	14,630,036

Consolidated statement ofchangesin equity

Forthesixmonthsended30thNovember2013

	Share capital £	Share premium account £	Investment in own shares £	Fair value reserve £	Share option reserve £	Capital redemption reserve £	Retained earnings £	Total £
At1stJune2013	269,377	2,045,409	(4,910,800)	302,867	716,660	20,582	16,185,941	14,630,036
Profitfortheperiod	-	-	-	-	-	-	2,419,807	2,419,807
Comprehensiveincome	-	-	-	81,345	-	-	-	81,345
Totalcomprehensive income	-	-	-	81,345	-	-	2,419,807	2,501,152
Transactionswith owners Shareoptionexercise	350	15,400	-	-	(3,717)	-	3,717	15,750
Sharecancellation	-	-	-	-	-	-	-	-
Purchaseofownshares	-	-	-	-	-	-	-	-
Share-basedpayment	-	-	-	-	(34,247)	-	-	(34,247)
Deferredtax	-	-	-	-	(50,469)	-	(29,672)	(80,141)
Currenttaxonshareoptions	-	-	-	-	-	-	29,627	29,627
Dividendspaid	-	-	-	-	-	-	(4,020,708)	(4,020,708)
Totaltransactions withowners	350	15,400	-	-	(88,433)	-	(4,017,036)	(4,089,719)
As at 30th November 2013	269,727	2,060,809	(4,910,800)	384,212	628,227	20,582	14,588,712	13,041,469

	Share capital £	Share premium account £	Investment in own shares £	Fair value reserve £	Share option reserve £	Capital redemption reserve £	Retained earnings £	Total £
At1stJune2012	268,784	1,980,084	(4,560,603)	(65,869)	1,267,553	18,562	16,380,074	15,288,585
Profitfortheperiod	-	-	-	-	-	-	3,309,550	3,309,550
Comprehensiveincome	-	-	-	379,361	-	-	-	379,361
Totalcomprehensive income	-	-	-	379,361	-	-	3,309,550	3,688,911
Transactionswith owners Shareoptionexercise	1,563	39,075	95,125	-	(20,443)	-	20,443	135,763
Sharecancellation	(2,020)	-	-	-	-	2,020	(516,241)	(516,241)
Purchaseofownshares	-	-	(518,822)	-	-	-	-	(518,822)
Share-basedpayment	-	-	-	-	86,195	-	-	86,195
Deferredtax	-	-	-	-	(547,143)	-	(49,970)	(597,113)
Current tax on share options	-	-	-	-	-	-	119,389	119,389
Dividendspaid	-	-	-	-	-	-	(4,050,318)	(4,050,318)
Totaltransactions withowners	(457)	39,075	(423,697)	-	(481,391)	2,020	(4,476,697)	(5,341,147)
As at 30th November 2012	268,327	2,019,159	(4,984,300)	313,492	786,162	20,582	15,212,927	13,636,349

	Share capital £	Share premium account £	Investment in own shares £	Fair value reserve £	Share option reserve £	Capital redemption reserve £	Retained earnings £	Total £
At1stJune2012	268,784	1,980,084	(4,560,603)	(65,869)	1,267,553	18,562	16,380,074	15,288,585
Profitfortheyear	-	-	-	-	-	-	6,266,442	6,266,442
Comprehensiveincome	-	-	-	368,736	-	-	-	368,736
Totalcomprehensive income	-	-	-	368,736	-	-	6,266,442	6,635,178
Transactionswith owners Shareoptionexercise	2,613	65,325	168,625	-	(37,159)	-	37,159	236,563
Sharecancellation	(2,020)	-	-	-	-	2,020	(516,241)	(516,241)
Purchaseofownshares	-	-	(518,822)	-	-	-	-	(518,822)
Share-basedpayment	-	-	-	-	135,872	-	-	135,872
Deferredtax	-	-	-	-	(649,606)	-	(57,325)	(706,931)
Currenttaxonshareoptions	-	-	-	-	-	-	122,544	122,544
Dividendspaid	-	-	-	-	-	-	(6,046,712)	(6,046,712)
Totaltransactions withowners	593	65,325	(350,197)	-	(550,893)	2,020	(6,460,575)	(7,293,727)
As at 31stMay2013	269,377	2,045,409	(4,910,800)	302,867	716,660	20,582	16,185,941	14,630,036

Consolidated cash flowstatement

Forthesixmonthsended30thNovember2013

	Six months ended 30th Nov 2013 (unaudited) £	Six months ended 30th Nov 2012 (unaudited) £	Year ended 31st May 2013 (audited) £
Cash flow from operating activities
Operating profit	3,308,888	4,630,732	8,359,010
Adjustments for: Depreciation charges	63,342	89,100	177,095
Amortisation of intangible assets	22,730	22,730	45,461
Share-based payment charge	(34,247)	86,196	135,872
Translation adjustments Cash generated from operations before changes	7,130	162,539	(8,539)
in working capital	3,367,843	4,991,297	8,708,899
Decrease in trade and other receivables	138,187	1,651,813	1,806,608
Decrease in trade and other payables	(855,303)	(834,236)	(760,344)
Cash generated from operations	2,650,727	5,808,874	9,755,163
Interest received	53,109	34,097	60,898
Interest paid	(385)	-	-
Taxation paid	(1,080,102)	(1,230,826)	(2,248,450)
Net cash generated from operating activities	1,623,349	4,612,145	7,567,611
Cash flow from investing activities
Purchase of property and equipment	(11,558)	(40,935)	(60,316)
Purchase of non-current financial assets	(1,833)	-	(3,811)
Proceeds from sale of non-current financial assets Purchase of current financial assets	10,217 -	- (312,246)	- (328,991)
Proceeds from sale of current financial assets	2,115,326	-	4,332,466
Net cash generated from/(used in) investing activities	2,112,152	(353,181)	3,939,348
Cash flow from financing activities
Proceeds from issue of ordinary shares	15,750	40,638	67,938
Ordinary dividends paid	(4,020,708)	(4,050,318)	(6,046,712)
Purchase and cancellation of own shares	-	-	(516,241)
Purchase of own shares by employee share option trust	-	-	(518,822)
Proceedsfromsale of ownshares by employeeshare optiontrust	-	95,125	168,625
Net cash used in financing activities	(4,004,958)	(3,914,555)	(6,845,212)
Net (decrease)/increase in cash and cash equivalents	(269,457)	344,409	4,661,747
Cash and cash equivalents at start of period	10,061,185	5,399,869	5,399,869
Effect of exchange rate changes	105,099	46,890	(431)
Cash and cash equivalents at end of period	9,896,827	5,791,168	10,061,185

Notes

1 Basisofpreparationandsignificantaccountingpolicies

Thefinancialinformationcontainedhereinisunauditedanddoesnotcomprisestatutoryfinancial informationwithinthemeaningofsection434oftheCompaniesAct2006.Theinformationforthe yearended31stMay2013hasbeenextractedfromthelatestpublishedauditedaccounts.Thereport oftheindependentauditoronthosefinancialstatementscontainednoqualificationorstatement unders498(2)or(3)oftheCompaniesAct2006.

TheseinterimfinancialstatementshavebeenpreparedinaccordancewiththeDisclosureand TransparencyRulesoftheFinancialConductAuthorityandIAS34"InterimFinancialReporting" asadoptedbytheEuropeanUnion.Theaccountingpoliciesareconsistentwiththosesetoutand appliedinthestatutoryaccountsoftheGroupfortheperiodended31stMay2013,whichwere preparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion.

2 Segmentalanalysis

ThedirectorsconsiderthattheGrouphasonlyonereportablesegment,namelyassetmanagement, andhenceonlyanalysisbygeographicallocationisgiven.

	USA £	Canada £	UK £	Europe (ex UK) £	Other £	Total £
Six months to 30th Nov 2013
Revenue	10,800,412	347,397	134,845	503,336	-	11,785,990
Non-current assets:
Property and equipment	292,514	-	137,453	-	8,907	438,874
Intangible assets	284,128	-	-	-	-	284,128
Six months to 30th Nov 2012
Revenue	12,721,460	332,248	1,227,868	853,674	-	15,135,250
Non-current assets:
Property and equipment	362,049	-	178,480	-	18,743	559,272
Intangible assets	329,589	-	-	-	-	329,589
Year to 31st May 2013
Revenue	25,411,693	699,249	1,551,037	1,701,755	-	29,363,734
Non-current assets:
Property and equipment	319,595	-	158,353	-	12,710	490,658
Intangible assets	306,858	-	-	-	-	306,858

TheGrouphasclassifiedrevenuebasedonthedomicileofitsclientsandnon-currentassetsbasedon wheretheassetsareheld.Anyindividualclientgeneratingrevenueof10%ormorewouldbe disclosedseparately,aswouldassetsinaforeigncountryiftheyarematerial.

3 Interestreceivableandsimilarincome

	30th Nov	30th Nov	31st May
	2013	2012	2013
	£	£	£
Interest	52,724	34,097	60,898
(Loss)/Gain on sale of investments	(26,440)	-	440,209
	26,284	34,097	501,107

4 Earningspershare

Thecalculationofearningspershareisbasedontheprofitfortheperiodof£2,419,807(31stMay

2013-£6,266,442;30thNovember2012-£3,309,550)dividedbytheweightedaveragenumberof ordinarysharesinissueforthesixmonthsended30thNovember2013of25,124,451(31stMay

2013-25,152,921;30thNovember2012-25,254,902).

Assetoutinnote5theEmployeeBenefit Trustheld1,843,283ordinarysharesinthecompanyasat

30thNovember2013. The Trusteesofthe Trusthavewaivedallrightstodividendsassociatedwith theseshares.InaccordancewithIAS33"Earningspershare",theordinarysharesheldbythe EmployeeBenefit Trusthavebeenexcludedfromthecalculationoftheweightedaveragenumberof ordinarysharesinissue.

Thecalculationofdilutedearningspershareisbasedontheprofitfortheperiodof£2,419,807 (31stMay2013-£6,266,442;30thNovember2012-£3,309,550)dividedbythedilutedweighted averagenumberofordinarysharesinissueforthesixmonthsended30thNovember2013of

25,289,846(31stMay2013-25,432,704;30thNovember2012-25,697,187).

5 Investmentinownshares

InvestmentinownsharesrelatestoCityofLondonInvestmentGroupPLCsharesheldbyan

EmployeeBenefitTrustonbehalfofCityofLondonInvestmentGroupPLC.

At30thNovember2013theTrustheld1,843,283ordinary1pshares(31stMay2013-1,843,283;

30thNovember2012-1,877,783),ofwhich1,552,490ordinary1pshares(31stMay2013-

1,773,865;30thNovember2012-1,585,115)weresubjecttooptionsinissue.

6 Dividends

Afinaldividendof16ppershareinrespectoftheyearended31stMay2013waspaidon25thOctober

2013.

Aninterimdividendof8ppershare(2013-8p)inrespectoftheyearended31stMay2014willbe paidon28thFebruary2014tomembersregisteredatthecloseofbusinesson7thFebruary2014.

7 Principalrisksanduncertainties

Changesinmarketprices,suchasforeignexchangeratesandequitypriceswillaffecttheGroup's incomeandthe
valueofitsinvestments.

MostoftheGroup'srevenues,andasignificantpartofitsexpenses,aredenominatedincurrencies otherthansterling,principallyUSandCanadianDollars.Theserevenuesarederivedfromfee incomewhichisbaseduponthenetassetvalueofaccountsmanaged,andhavethebenefitofa naturalhedgebyreferencetotheunderlyingcurrenciesinwhichinvestmentsareheld.Inevitably, debtorandcreditorbalancesarisewhichinturngiverisetocurrencyexposures.

8 General

Theinterimfinancialstatementsforthesixmonthsto30thNovember2013wereapprovedbythe Boardon15thJanuary2014.Thesefinancialstatementsareunaudited,buttheyhavebeenreviewed bytheauditors,havingregardtothebulletin"ReviewofInterimFinancialInformation"issuedby theAuditingPracticesBoard.

Copiesofthisstatementareavailableonourwebsite,ww w .citlon.co.uk

Statement ofdirectors'responsibilities

Thedirectorsareresponsibleforpreparingthecondensedsetoffinancialstatements,inaccordancewith applicablelawandregulationsandconfirmthat,tothebestoftheirknowledge:

? thiscondensedsetoffinancialstatementshasbeenpreparedinaccordancewithIAS34"Interim

FinancialReporting",asadoptedbytheEuropeanUnion,and

? thiscondensedsetoffinancialstatementsincludesafairreviewoftheinformationrequiredbySections DTR4.2.7RandDTR4.2.8RoftheDisclosureandTransparencyRulesoftheUnitedKingdom's
FinancialConductAuthority.

ByorderoftheBoard

BMOlliff

ChiefExecutiveOfficer

Independent reviewreport toCityofLondon Investment Group PLC

Introduction

Wehavebeenengagedbythecompanytoreviewthecondensedsetoffinancialstatementsinthehalf- yearlyfinancialreportforthesixmonthsended30thNovember2013setoutonpages7to14. Wehave readtheotherinformationcontainedinthehalf-yearlyfinancialreportandconsideredwhetheritcontains anyapparentmisstatementsormaterialinconsistencieswiththeinformationinthecondensedsetof financialstatements.

ThisreportismadesolelytothecompanyinaccordancewithInternationalStandardonReview Engagements(UKandIreland)2410'ReviewofInterimFinancialInformationPerformedbythe IndependentAuditoroftheEntity'issuedbytheAuditingPracticesBoard.Ourworkhasbeenundertaken sothatwemightstatetothecompanythosematterswearerequiredtostatetotheminanindependent reviewreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassume responsibilitytoanyoneotherthanthecompany,forourreviewwork,forthisreport,orforthe conclusions

wehaveformed.

Directors'responsibilities

Thehalf-yearlyfinancialreportistheresponsibilityof,andhasbeenapprovedby,thedirectors.The directors

areresponsibleforpreparingthehalf-yearlyfinancialreportinaccordancewiththeDisclosure andTransparencyRulesoftheUnitedKingdom'sFinancialConductAuthority.

AsdisclosedinNote1,theannualfinancialstatementsofthegrouparepreparedinaccordancewith

IFRSsasadoptedbytheEuropeanUnion.Thecondensedconsolidatedsetoffinancialstatements

includedinthishalf-yearlyfinancialreporthasbeenpreparedinaccordancewithInternationalAccounting

Standard34,'InterimFinancialReporting',asadoptedbytheEuropeanUnion.

Ourresponsibility

OurresponsibilityistoexpresstotheCompanyaconclusiononthecondensedsetoffinancialstatements inthehalf-yearlyfinancialreportbasedonourreview.

Scopeofreview

WeconductedourreviewinaccordancewithInternationalStandardonReviewEngagements(UKand Ireland)2410,"ReviewofInterimFinancialInformationPerformedbytheIndependentAuditorofthe Entity"issuedbytheAuditingPracticesBoardforuseintheUnitedKingdom.Areviewofinterim financialinformationconsistsprincipallyofmakingenquiries,primarilyofpersonsresponsiblefor accountingmatters,andapplyinganalyticalandotherreviewprocedures.Areviewissubstantiallylessin scopethananauditperformedinaccordancewithInternationalStandardsonAuditing(UKandIreland) andconsequentlydoesnotenableustoobtainassurancethatwewouldbecomeawareofallsignificant mattersthatmightbeidentifiedinanaudit.Accordinglywedonotexpressanauditopiniononthe financialinformation.

Conclusion

Basedonourreview,nothinghascometoourattentionthatcausesustobelievethatthecondensedsetof financialstatementsinthehalf-yearlyfinancialreportforthesixmonthsended30thNovember2013isnot prepared,inallmaterialrespects,inaccordancewithInternationalAccountingStandard34asadoptedbythe EuropeanUnionandtheDisclosureandTransparencyRulesoftheUnitedKingdom'sFinancialConduct Authority.

MooreStephensLLP

RegisteredAuditorsandCharteredAccountants

150AldersgateStreet,London,EC1A4AB

17thJanuary2014

This information is provided by RNS

The company news service from the London Stock Exchange

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